Module 2
Total Quality in
Organizations
1
Growth of Modern
Quality Management
Performance
excellence
Service
quality
Improved
product designs
Manufacturing
quality
2
Systems Thinking
• A system is the functions or activities
within an organization that work together
for the aim of the organization.
• Subsystems of an organization are linked
together as internal customers and suppliers.
• A systems perspective acknowledges the
importance of the interactions of
subsystems, not the actions of them
individually.
3
Manufacturing Systems (1 of 2)
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Product design and engineering
Purchasing and receiving
Production planning and scheduling
Manufacturing and assembly
Tool engineering
4
Manufacturing Systems (2 of 2)
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Industrial engineering and process design
Finished goods inspection and test
Packaging, shipping, and warehousing
Installation and service
5
Manufacturing Example
http://www.youtube.com/watch?v=_jfXX7qppbc
6
Manufacturing Example (Cont.)
https://www.youtube.com/watch?v=736O4Hz4Nk4
7
Quality in Business Support
Functions for Manufacturing
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General management (Support)
Finance and accounting (Funding)
Marketing & Sales (Feedback)
Quality assurance (Specialists)
Legal services (Compliance)
8
Quality in Services
• Service is defined as “any primary or
complementary activity that does not
directly produce a physical product – that is,
the non-goods part of the transaction
between buyer (customer) and seller
(provider).”
9
Critical Differences between
Service and Manufacturing (1 of 2)
• Customer needs and performance standards
are more difficult to identify and measure
• Services requires a higher degree of
customization and flexibility
• Output is intangible
10
Critical Differences between Service
and Manufacturing (2 of 2)
• Services are produced and consumed
simultaneously
• Customers are often involved in actual
process
• Services are more labor-intensive than
manufacturing
• Services handle large numbers of transactions
• Services are not realized until delivered
11
Components of Service
System Quality
• Employees
• Information technology
12
The Ritz-Carlton Hotel Co.
13
Quality Issues in Health Care
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Avoidable errors
Underutilization of services
Overuse of/Unnecessary services
Variation in services
14
Building Trust through Quality
at Gerber
1. How do the various definitions of quality
discussed in this module relate to the quality
practices at Gerber?
2. How does Gerber exhibit the fundamental
principles of total quality – customer and
stakeholder focus, participation and
teamwork, and a process focus and
continuous improvement?
15
Building Trust through Quality
at Gerber
3. How did quality help Gerber
overcome the crisis it faced in the
consumer-tampering situation?
What lessons do their steps have for
other companies?
16